Here’s how to determine your Facebook ads budget…
Start with your expected Cost Per Action. This is for your Performance GoalThe Performance Goal is chosen within the ad set and determines optimization and delivery. How you optimize impacts who sees your ad. Meta will show your ad to people most likely to perform your desired action. More that is used for optimization. Multiply that by 50. This total is your minimum target weekly budgetA budget is an amount you're willing to spend on your Facebook campaigns or ad sets on a daily or lifetime basis. More.
Why 50? You typically need to get at least 50 goal actions per week to exit the learning phase. This is per ad setAn ad set is a Facebook ads grouping where settings like targeting, scheduling, optimization, and placement are determined. More, of course.
Truly, this is the minimum for getting optimal results. If you can set your initial budget at the point you may eventually scale to, you speed up learning instead of reacting based on performance.
Now, I know… A minimum of 50X CPA is not always reasonable, especially for smaller businesses when the performance goal is a sale. I’m not saying you HAVE to use this budget as a starting point. It’ll put you in the best position to succeed.
But if you can’t spend that much, you have two options:
1. Spend less! No problem. Try a lower budget and see how it goes. You might be fine.
2. Use a different performance goal that will generate more volume. Maybe instead of sales, it’s Leads or Add to Cart or Initiate Checkout.
Bottom line: Understand the relationship between budget, volume, and optimization. Be aware of that 50X goal if you can get there. After that, experiment and find what works for you.
How do you set your budget?
